Talk About Being on the Pulse
Posted: Sat Apr 04, 2009 1:53 pm
So I just submitted an article last night that I let stew all month long. It is an in-depth look at the handwriting on the wall for credit card companies and a warning that saving good old cash is a must now because credit lines are not remotely reliable for emergency funds right now. Credit card companies like American Express actually paid some people to close their accounts! My article is still in review...
So this morning, I open Yahoo and what's on the splash screen? Suze Orman is using the exact same analysis I did to change her traditional advice of put all extra money to a credit card to instead pay only minimum payments and put everything in savings! It's funny because the article cites the same evidence I did that the days are numbered for credit card companies, though I went one further. I also hypothesized that if the credit card companies are saddled with unpredictable default rates, they may lose some of their ability to meet transaction covering demand, and in turn merchants or utilities may not wish to work with them anymore. Scary I know, but the researche shows that last quarter the number of people defaulting on credit card lines (more than 3 months delinquent/no payment) was more than double original forecasts....
My article is more about the importance of savings, even at the macroeconomic level, so it's not a situation of she beat me to the punch or anything. I just feel very validated in my analysis :)
So this morning, I open Yahoo and what's on the splash screen? Suze Orman is using the exact same analysis I did to change her traditional advice of put all extra money to a credit card to instead pay only minimum payments and put everything in savings! It's funny because the article cites the same evidence I did that the days are numbered for credit card companies, though I went one further. I also hypothesized that if the credit card companies are saddled with unpredictable default rates, they may lose some of their ability to meet transaction covering demand, and in turn merchants or utilities may not wish to work with them anymore. Scary I know, but the researche shows that last quarter the number of people defaulting on credit card lines (more than 3 months delinquent/no payment) was more than double original forecasts....
My article is more about the importance of savings, even at the macroeconomic level, so it's not a situation of she beat me to the punch or anything. I just feel very validated in my analysis :)